CR Capital AG

M&A Activity • Aug 17, 2009

News Details

Corporate | 17 August 2009 07:01

CR Capital Real Estate AG: Step by step towards a residential GREIT – CR Capital intends to construct 40 residential units in Berlin Prenzlauer Berg district

CR Capital Real Estate AG / Miscellaneous

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14 August 14 2009, CR Capital Real Estate AG acquired a developable plot of
land in Berlin. It is planned to construct a residential building with a
rental area of approximately 2,200 sqm (approximately 40 residential uits).
The plot of land is located in Czarnikaur Straße in Prenzlauer Berg
district. Purchase price is EUR 580,000 or EUR 260 per sqm (plus related
costs). Seller is a Danish institutional investor.

Start of construction for the 7-floor residential building is probably in
the fourth quarter 2009 and it is planned to finish construction of the 40
residential units in summer 2010.

Based on this project, the property portfolio of CR Capital Real Estate AG
grows by a further property eligible for the REIT status. After finishing
this project, 60% of the property stock of the company will be residentials
- a key strategic element for the company. CEO Thomas Ehrich:' CR Capital
Real Estate AG is planned to be the first German residential REIT. This new
building project is a further step achieving this target.'.

CR Capital Real Estate AG will pay the plot of land completely by cash.
Financing of the new building is planned to do by leverage (equity ration
today 90%) and in cooperation with Kreditanstalt für Wiederaufbau (KfW).

The residentials will be constructed according to the latest standards of
energy-effiency. Due to this, operation costs for the tenants will be
substantially below the average figures of the neighbourhood in the
Prenzlauer Berg district.

Average size of the units will be between 50 and 60 sqm. With this average
size, CR Capital Real Estate AG matches the demand for small to
medium-sized residential units with high equipment standard in the city
center of Berlin.

Achievable monthly net cold rent will be between EUR 7 and EUR 8 per sqm,
this starting from start of letting scheduled for Q3/2010.

Bigger-sized residential units located in the top floor of the building
will be probably offered for sale.

About CR Capital Real Estate AG

Berlin CR Capital Real Estate AG is a listed property company and owns the
status of a Vor-REIT (pre REIT status). The Group manages high quality
residential and commercial properties at top locations in the greater
Berlin area.

The current property portfolio consists predominantly of city villas
located in Berlin-Grunewald. Group's strategy provides for growth of the
property portfolio on other Berlin districts and Potsdam respectively
enlargement of Group's fields of action, this by the acquisition of medical
centres and new buildings subsidized by the Kreditanstalt für Wiederaufbau
(KfW). Thereby Groups business operations can be developed to an expanded
base.

Contact:
bonnIR
Hubert Bonn
Phone: +49 (0)6157 9861190
bonn@bonn-ir.com
http://www.bonn-ir.com

17.08.2009 Financial News transmitted by DGAP